Investment Property Calculator

Calculate mortgage payments and analyze cash flow for investment properties and rental real estate.

Investment Property Features

  • Rental Income: Generate monthly cash flow
  • Property Appreciation: Potential value growth
  • Tax Benefits: Depreciation and deductions
  • Leverage: Use borrowed money to invest
  • Portfolio Diversification: Real estate investment

Investment Property Requirements

  • Higher Down Payment: Typically 20-25%
  • Higher Interest Rates: 0.5-0.75% above primary residence
  • Higher Credit Scores: Usually 720+ required
  • Cash Reserves: 6+ months mortgage payments
  • Lower DTI: Conservative debt-to-income ratios

Key Investment Metrics

Important calculations for rental property analysis

Cash Flow

Monthly rental income minus all expenses including mortgage, taxes, insurance, and maintenance.

Cap Rate

Annual net operating income divided by property purchase price. Measures property's profitability.

1% Rule

Monthly rent should equal at least 1% of purchase price for positive cash flow potential.